A sustained move under $53.61 will signal a good sellers which indicates a bull trap. This can trigger a labored break with potential targets weighing $52.40, $51.29 and $50.66. If $50.66 fails as support discover the supplying extend in to the main retracement zone at $50.28 to $48.83.
A sustained make room $54.00 will indicate the presence of buyers. This may also indicate that Friday’s move was fueled by fake buying rather and simply buy stops. The upside momentum won’t continue and testing $54.98 can be a fantasy for buyers from fuelled trade talks.
Lifting Iranian sanctions have a significant effect on the entire world oil market. Iran’s oil reserves are the fourth largest on earth with a production capacity of about 4 million barrels a day, which makes them the second largest producer in OPEC. Iran’s oil reserves be the cause of approximately 10% of the world’s total proven petroleum reserves, in the rate from the 2006 production the reserves in Iran could last 98 years. Most likely Iran create about One million barrels of oil each day towards the market and according to the world bank this will resulted in lowering of the crude oil price by $10 per barrel next year.
According to Data from OPEC, at the beginning of 2013 the biggest oil deposits are in Venezuela being 20% of world oil reserves, Saudi Arabia 18%, Canada 13% and Iran 9%. Because of the characteristics of the reserves it’s not at all always very easy to bring this oil for the surface because of the limitation on extraction technologies and also the cost to extract.
As China’s increased interest in propane rather than fossil fuel further reduces overall requirement for oil, the rise in supply from Iran and the continuation Saudi Arabia putting more oil to the market should start to see the price drop over the next Yr and some analysts are predicting prices will fall into the $30’s.
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